Blockchain Regulation Could Protect Personal Data

The rise and fall of cryptocurrencies has led to deluge of regulations that have been focused on handling the securities created using blockchain technology. The regulation on the technology itself has been limited as most authorities are more concerned about the products that are created using blockchain technology then the technology itself. How countries and regions handle bid data could have a profound effect on a ledger based technology such as blockchain. Cryptocurrency regulation is different in different parts of the world. This makes the technology that is used to create those cryptocurrencies subject to local regulation.

Laws in the EU Will Soon Take Effect

On May 28, 2018, a new law will take effect in the EU which will require companies to obtain the consent of the data they use and clarify their ultimate purpose when collecting data from individuals or businesses. Publishers and advertisers will also need to get the consent of business and individuals to use personal data for target advertisement. This could also affect the way people learn crypto trading.

Blockchain Technology Allows Individuals to Take Control

Blockchain technology creates an environment whereby individuals drive the system compared to most systems that are controlled by a central authority. This will allow individuals and businesses to take control of the data they provide and benefit from owning their data as well. Historically, individuals have had little control of how companies collect and use their data. In fact, most people would be shocked to know the value of their personal data and how much it sells for. Blockchain technology will allow individuals to control their own data, and cut out companies that benefit from selling personal information. Blockchain platforms will allow individuals to generate revenue by sharing their personal data with advertisers.

The Cost of Implementation is high

The costs and complexity of implementing these new laws, is very high and could be a hurdle that kills the initiative. For example, Ernest and Young in collaboration with the International Association of Privacy Professionals believe companies will need to spend a total of $7.8 billion to comply with the GDPR regulation. This equates to an average of around $16 million per company.

Compliance and Penalties Will Need to be litigated

These costs are a combination of compliance measures as well as penalties that will be levied if there is a breach of data. New regulations will create an entire new realm of a gray area, which will need to be litigated to achieve clarity. The lack of clarity means that the initial interpretation of the new laws will largely be at the discretion of the regulators and they will determine what constitutes a violation and what does not.

Summary

Blockchain technology could be the solution to issues with big data. Blockchain allows individuals and companies to decide who can use their data and for what use. While there is little regulation on blockchain technology, the source of this platform can be the benchmark for how companies collect data in the future.